- Cardiology interventions and diagnostics are a big market, and the new field of remote monitoring, for arrhythmias and heart trouble, is a rapidly expanding component. Better remote monitoring technology is revolutionizing patient care and leading to better outcomes for patients.
- Companies like IRTC, with its Zio Device, are valued at 15x their sales based on this market growth, and little BTCY is on the verge of a major breakout with their own newly FDA approved device, called Bioflux. The stock could be undervalued by 3-fold with first sales to emerge in the coming months; BTCY could be worth $9 to $14 with the right execution.
NEW YORK, NY / ACCESSWIRE / April 5, 2018 / Remotely monitoring at-risk patients is the emerging future of healthcare, a trend driven by better and cheaper digital sensors. That point was driven home last month with new study results from iRhythm Technologies, Inc. (IRTC) that confirm what remote patient monitoring (RPM) pioneers have been saying for years - remote monitoring can lead to better diagnosis and treatment.
IRTC's product is called Zio, an ultra-portable ECG monitor to help doctors understand when and why patients are experiencing irregular heartbeats, which may be indicative of bigger problems.
A little-known clinical trial conducted at the Scripps Translational Science Institute showed that people who used the Zio device had a three-fold higher rate of being diagnosed with atrial fibrillation compared to patients who just had routine care! That ultimately led to significant changes in the patient's treatment.These results are exceptional, and they demonstrate that remote cardiac monitoring leads to actionable outputs and improved treatment for patients.
Investors see it, and IRTC has been on a non-stop climb since its IPO in late 2016, from $17 to a high of $68 in March.
A new competitor is nipping at IRTC's heals: Biotricity Inc. (BTCY) just landed FDA clearance for their own remote ECG device, Bioflux, in December. They're in the middle of launching this new remote monitoring device into the very same market as Zio, and Bioflux could steal the show in 2018. The device launch is completely off of Wall Street's radar, and with even a small amount of revenues in the coming months, this $3 stock could be worth $9-14 in due time.
Remote Monitoring Solutions Creating New Demand in The $28B Cardiac Industry
Consider the recent move from Tenax Therapeutics (TENX), a small company that also operates in the cardio space, which rocketed higher on good news for their developmental cardiac drug, levosimendan, this week. Arena Pharmaceuticals (ARNA) likewise has rallied over 100% in the last year in the wake of great data for their drug, ralinepag. Why? Both have huge addressable markets.
According to the Centers for Disease Control and Prevention, 11 million patients in the United States have a heart rhythm disorder or arrhythmia. Diagnosis relies on tests such as ECGs (electrocardiograms) to determine the severity of the disorder. Initially, this includes an in-hospital ECG, but arrhythmias can be sporadic, and keeping patients in the hospital hooked to an ECG for days at a time is expensive and inconvenient.
The most recent advancement in cardiac monitoring is continual Mobile Cardiac Telemetry, or MCT, consisting of around-the-clock patient heart monitoring through small leads on a patient's chest and a phone-like device that the patient carries with them. In the case of iRhythm's Zio device, this is a small wearable patch that gets mailed to an anlysis center every two weeks. The MCT space has grown with improved technology, similar to wearables, and doctors are increasingly turning to simple, small devices like Zio.
The global cardiac monitoring market is projected to reach $28.0 billion by 2021, according to Markets and Markets, and over time more and more of this market to move towards remote, software-driven products as the evidence builds that they can improve outcomes for patients. For the companies - and investors - operating in this industry, that could be huge.
Biotricity Device Launch Underway, Stock Could Explode Higher in 2018
Amazingly, iRhythm Technologies generated $98.5 million in revenue last year with their ONLY product, the Zio Device, just two years after their IPO
Wall Street is all over IRTC, with a $1.45 billion valuation based on this emerging opportunity in cardiac monitoring, but they have yet to pick up on the newest entrant into this closely held field of devices. Biotricity (BTCY) JUST received FDA clearance for Bioflux in December and is now in the midst of expanding their sales team and pilot sites for the launch of Bioflux.
Biotricity's solution is elegant and potentially transformative. Their Bioflux is a small, phone-like device with cables leading to electrodes on the patient's chest, exactly like an in-hospital ECG. The device is small enough that the patient can go home and about their normal life. Meanwhile, Bioflux records and transmits their ECG data to a remote monitoring facility where it can be accessed in real-time by the patient's doctor. Ultimately, this streamlines and simplifies the diagnosis process - possibly even more-so than the ZIO device, which requires being mailed in to the service center.
Biotricity expects their first revenue to emerge in the coming months, a major catalyst for any new medical device company, and BTCY doesn't need much to justify a significantly higher stock price from today.
What could it be worth?
Investors give high-growth companies compelling stock valuations based precisely on their growth prospects. Amazon (AMZN) has been valued richly by the public markets for years, despite rarely turning a profit, because their growth and market opportunity is just so big. The same can be said for high-value medical device sectors like cardio monitoring as well.
Based on how IRTC is received by investors, and the fact the BTCY is still an undiscovered company, we think this small company's forthcoming revenue stream could quickly rationalize a stock price even 3-4X higher.
IRhythm is a $1.454 billion company, with just $99 million in sales last year. This implies a 15X Price-To-Sales multiple, one metric from which investors determine fair value for publicly traded companies.
With even $20-30 million in sales in the coming years, a similar 15X Price-to-Sales ratio for BTCY would be indicated a market value of $300 to $450 million, or a stock price of $9 to $14! With commercial efforts underway, BTCY is about to begin generating revenue in an immense market, and this could be the catalyst to take the stock on its next leg higher.
Biotricity is a small-cap company and as such carries particular risks. The company will likely need to raise additional capital in order to finance its ongoing business, and Bioflux is entering a market where larger companies are already established. Healthcare investing is already a volatile space, and drug/device companies are known for either being multi-bagger winners or complete zeroes; you could lose all of your investment in BTCY.
BTCY could be worth significantly more than today with great execution, and the onset of their first sales in 2018 could be the catalyst to send BTCY higher.The company is also working on their next remote patient monitoring devices, with details coming in the third quarter and another FDA filing later this year.
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